According to reports, Dong Qingxian, CEO of UOB (Hong Kong), stated that due to sustained capital inflows and the positive impact of rising interest rates on liability management, the bank continues to be "optimistic" about Hong Kong's growth prospects and its unique advantage as a connector for business between Mainland China and ASEAN.
The bank also plans to intensify its efforts to expand its private banking and wealth management business in the future.
Addressing external concerns regarding the asset quality of the bank's Hong Kong commercial real estate (CRE) credit risk, he noted that although valuations for related properties have declined significantly in recent years, the bank has not demanded immediate early repayment from borrowers.
The vast majority of related clients are willing to continue operations, and the bank will negotiate debt arrangements with them.
Regarding the recent frequent auctions and sales of bank-owned properties in the market, Dong Qingxian mentioned observing an increase in similar transactions, particularly in rental properties in the Central district.
He hopes this positive trend will continue, but given uncertainties such as interest rate movements and Sino-US geopolitical factors, he is "not ready to hastily conclude that the worst is over for Hong Kong commercial real estate" at this stage.
However, Dong Qingxian reiterated that UOB has been operating in Hong Kong for decades, continuing through both good and bad times.
From a revenue perspective, Hong Kong has consistently ranked second or third within the group outside of the Singapore market.
Hong Kong and Mainland China contribute approximately 10% to the group's income, so the Hong Kong commercial real estate credit risk will not have a significant impact on the group.
Regarding the current proportion of real estate-related loans to UOB (Hong Kong)'s total loan portfolio, whether it has decreased from the level of over 40% reported last June, and the latest non-performing loan ratio and credit impairment for these loans, he stated that as the group will announce its second-quarter results in early August, he cannot comment at this stage.
Furthermore, UOB has set a target to achieve a fivefold compound growth in Hong Kong's Assets Under Management (AUM) and wealth business revenue by 2030 compared to current levels.
Zhao Minyao, Head of UOB Private Bank and Managing Director, anticipates that the Hong Kong private banking relationship manager (RM) team will increase from the current approximately 20 to 60 by then.